US EditionCentral bank chief: State spending exceeding revenues must be addressed
- Chancellor Rachel Reeves, in interviews with Laura Kuenssberg on BBC and Sky News, defended the Labour government's economic plans ahead of the Spring Statement on Wednesday, which is expected to outline spending cuts.
- The Labour Government's announcement of spending cuts to the civil service and a plan to slash the welfare budget by £5 billion comes after promising change from the austerity agenda of the previous Conservative administration during their General Election campaign.
- Reeves repeatedly rejected descriptions of austerity and using Conservative policies, while SNP MP Dave Doogan criticized Labour's plans, stating their previous promises were “worthless” and that sticking to their fiscal rules means “more of the same for the public”.
- The Chancellor, facing increasing pressure to loosen her self-imposed fiscal rules, insisted that Britain has not been immune from the global increases in the cost of government debt and stated she would meet her fiscal rules and not cut taxes, despite some urging her to hike taxes for the wealthy.
- With the Office for Budget Responsibility preparing to slash growth forecasts and economists suggesting that the UK's stuttering growth, combined with rising debt interest payments, will eliminate Ms Reeves' headroom against her fiscal rules, the Spring Statement is expected to deliver spending cuts to protect frontline services, including £2 billion a year from the civil service, achieved by slashing administration costs by the end of the decade.
34 Articles
34 Articles
BREAKING: another £1.6 BILLION of DWP cuts could be coming as Reeves messed up her figures
On the eve of the controversial Spring Statement, the Times has reported that chancellor Rachel Reeves could be about to announce even more cuts to Department for Work and Pensions (DWP) benefits – to the tune of £1.6 billion In short, it seems that Reeves and her DWP counterpart Liz Kendall got their maths wrong – to the utter detriment of chronically ill, disabled, and non-working people. As the Times reported: Rachel Reeves will announce fur…
Banks Sour on UK Currency Over Economic Risks From Spending Cuts
Big banks are turning more pessimistic on the pound before the UK unveils its fiscal plan for the coming year, saying the risk of spending cuts and weaker economic growth forecasts dampens the currency’s appeal.
Central bank chief: State spending exceeding revenues must be addressed
Bank of Estonia Governor Madis Müller says that when taking on new debt, the government must consider that rapid debt growth can make bonds appear riskier to investors, which in turn drives up interest rates. State expenditures consistently exceed revenues, he notes, adding that this must be addressed.
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